China’s ZTE delays annual results after U.S. restrictions

Visitors check out products at the ZTE stand at the Mobile World Congress in Barcelona, February 24, 2014. REUTERS/Albert GeaThomson ReutersVisitors attend the ZTE stand at the Mobile World Congress in Barcelona

SHANGHAI (Reuters) – China’s ZTE Corp said on Thursday it will delay the publication of its annual results because it needs to assess the impact of tough U.S. export restrictions imposed on the telecom equipment maker last week.

The U.S. Commerce Department has imposed restrictions on U.S. suppliers providing crucial components to ZTE for alleged Iran sanctions violations, a move likely to disrupt its global supply chain.

The firm said in a filing to the Hong Kong stock exchange it was unable to finalize its annual results “pending a thorough self-assessment on the potential impacts of the restriction measures on the business and operation of the group.”

ZTE’s board meeting would also be postponed, while its Hong Kong-listed shares would continue to be suspended, it added. The shares last closed at HK$14.16, prior to a trading suspension on March 7.

Reuters reported on Wednesday that ZTE would appeal against the U.S. export restrictions after the firm’s costly lobbying effort failed to allay concerns about its business.

In January, ZTE said preliminary net profit for 2015 rose 43.5 percent to 3.8 billion yuan ($583 million). The company said it aimed to double its annual revenue by 2020.

Hong Kong-listed shares of ZTE have dropped 20 percent so far this year.

(Reporting by Adam Jourdan; Editing by Anne Marie Roantree and Stephen Coates)

Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

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